In recent years, the number of domestic residents buying cars is also gradually increasing, and it is precisely because of this that the mainland has become a larger market in the automotive field, so it has also attracted many car companies to come to develop. However, there is a joint venture car company that operates on the mainland to the point of bankruptcy. So what is the reason for this?
The bankrupt joint venture car company mentioned above is the Renault Brilliance Gold Cup. Many people may not know much about this car company, but if the Renault brand is mentioned, everyone may have heard about it. The car company is a French brand that has been in business for 122 years. Not only that, the company's Renault F1 was also welcomed by consumers, and it won the top spot in the European market for 19 years.
The company acquired the domestic Shenyang Brilliance Gold Cup. In fact, long before Renault acquired the company, it had also been the number one commercial vehicle sales in China for 19 consecutive years. So, how did the business do it?
Specifically, the original Shenyang Brilliance Jinbei (hereinafter referred to as Brilliance Jinbei) not only developed earlier in the automotive field, but also it was the earliest enterprise to enter the development of light commercial vehicles. It can be said that the company is one of the pioneers in this field.
It is precisely for this reason that it has enjoyed a lot of dividends in this field, and its popularity at that time was relatively high. Therefore, by 1997, the company had become the first light commercial vehicle in the country.
Since then, the company has continued to invest in research and development to build its own brand. Therefore, by 2010, Brilliance Jinbei already occupied 75% of the market share in this field, and also made it the first sales volume in China's commercial vehicle field for 19 consecutive years.
However, the high share and high sales volume of the company have not been maintained for a long time, mainly because when the company has achieved good returns in this field, other companies naturally want to enter this field to divide this big cake. Therefore, after that, the rise of brands such as Jiangling and SAIC gradually separated the interests of the company.
In 2016 alone, Brilliance Jinbei sold only one-fourth of what it sold in 2015, at 23,000 units. The most important thing is that because of the low sales volume, the company's profit in the current year is still in a state of loss.
In the following year, Renault acquired the company, so Renault Brilliance was officially born. I thought that with the blessing of the brand, I could bring Brilliance Jinbei back to life, but instead of showing signs of getting better, the company fell into the defeat of only selling 7,000 vehicles a year. So why didn't Renault make the business better?
In fact, mainly because the company did not consider the preferences of Chinese consumers, as we all know, Renault is a French brand, in the country its cars have flashy problems, the company's cars are indeed extremely beautiful in appearance, but in the interior of the car, it is full of plastic feeling.
This problem still exists even if the company develops in China. It can be seen that the company did not build cars based on the preferences of Chinese consumers. And the built-in sense of plastic affects not only the sense of experience, but also safety, but the company ignores this phenomenon.
Not only that, the company is on the engine, and it will not be updated in time. It is understood that the company's naturally aspirated engine has been using this engine since the acquisition of Brilliance Gold Cup. It wasn't until October 2019 that the new engine was introduced. The most critical thing is that even if it is such a car, the company is positioning its price with a high-end vehicle.
It is precisely for this reason that the company launched the Golden Cup Sea Lion King in 2020 and sold only 7,000 vehicles in one year. Not only that, but only 39 pure electric cars were sold in the first month of the company's launch, which shows the dismal sales of the company. It is worth noting that the company's tram is not only evaluated as cheap, but also its price is as high as 139,800-19.58 million yuan.
Under such a dismal sales volume, the company has finally reached the step of bankruptcy. Moreover, after proposing bankruptcy restructuring in 2020, Renault also terminated cooperation with Brilliance. And the final result is also regrettable.